Schwab Comes Out with Rollover Product

According to a Schwab news release, features of the
CSTC Rollover IRA include:

compliance with Department of Labor safe harbor
provisions

no distribution or setup fee for participants
or plan sponsors

automated distribution process

automated IRA account opening and
funding

annual account fee of $50

“This product is a benefit to plan sponsors and the
third party administrators who serve them, allowing them to
easily roll over balances and comply with new regulations
without having to build new processes or systems,” said
Mark Coffrini, vice president of Schwab Corporate Services,
in the news release.
“In addition, we provide the plan participants with
all the materials and resources they need to manage and
monitor their new IRA.”

The new offering comes as the new automatic
rollover rules are scheduled to go into effect. Come
March 28, plans with mandatory distribution provisions
will have to have something in place to deal with
distributions of more than $1,000 for which participant
does not provide distribution instructions (See
IRS, Treasury Issue Automatic Rollover
Guidance
).